Which Statement Is True About a Stock Split

question 51

Multiple Choice

Which statement is true about a stock split?

• A) Total shareholders' equity increases.
• B) Total shareholders' equity decreases.
• C) Total shareholders' equity remains the same.
• D) A change in total stockholders' equity depends upon whether it is a 2-for-1 split or a 1-for-2 split.

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Definitions:

Brand Loyalty

A consumer's preference to buy a particular brand’s product over others, often reflected in repeated purchases.

Economic Efficiency

A condition in which resources are distributed to optimize the production of goods and services while minimizing costs.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing ones.

Substitute Products

Goods and services that can be used in place of each other based on their utility and functional qualities.